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Riskified (RSKD) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 12, 2026

Source: earnings call transcript

Executive summary

Riskified Q2 FY26 — Strong Revenue Growth and Raised Outlook

Riskified delivered robust Q2 FY26 results, driven by an increasingly complex fraud environment and an expanded platform. The company saw accelerated revenue growth and improved profitability, leading to a raised full-year outlook. Management emphasized the value of its unified platform in addressing sophisticated fraud across the transaction lifecycle and expanding into new payment methods and categories.

Highlights

5

  • Revenue grew 22% year-over-year to $98.7 million, marking the strongest growth in over 4 years.

  • Adjusted EBITDA increased 84% to $3.9 million, demonstrating efficiency in scaling cost structure.

  • Full year revenue and adjusted EBITDA outlook was raised for the second time this year.

  • Multiproduct merchant base grew approximately 50% year-over-year, indicating successful platform strategy and upsell opportunities.

  • Competitive win rates remained above 75% in the second quarter, highlighting platform differentiation.

Concerns

2

  • Gross margin in Q2 was 46%, attributed to ramping new merchants which typically begin at lower margins and a mix shift towards lower-margin ticketing.

  • GAAP net loss was $9.1 million, impacted by a decline in interest income and an increase in other expenses primarily tied to foreign currency fluctuations.

Guidance & targets

CategoryTargetConfidence
Full year revenue
$400M-$410M
high materiality
High
Q3 revenue growth
approximately 27%
medium materiality
High
Full year Adjusted EBITDA
$33M-$39M
high materiality
High
Full year gross profit growth
11% to 14%
medium materiality
High
Q3 gross profit growth
similar to the growth in the second quarter
medium materiality
High
Quarterly non-GAAP operating expenses
$42M-$43M
medium materiality
High
Full year Free cash flow
exceed $40M
medium materiality
High
Digital Finance category growth rate
significantly exceed the company's average growth rate
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Digital Finance
Growth driven primarily by the ramp of multiple new merchants onboarded in the quarter to the event contracts and gaming vertical, with upsell activity contributing.
—approximately 180%——
Tickets and Travel
Acceleration from 18% in Q1. Tickets was the primary driver with growth accelerating meaningfully due to strengthened same-store sales momentum and elevated live sports events. Travel continued to deliver growth despite tough year-over-year comparison.
—approximately 23%——
Fashion and Luxury
Driven by new and upsell activity as well as same-store performance.
—4%——
United States
Billings growth, up from 10% in Q1. Reflects continued strength in tickets and the addition of new merchants in digital finance.
—approximately 38%——
APAC
Billings growth in Q2. Healthy underlying demand in the region, with expectations for more balanced growth as the year progresses.
—approximately 42%——
Other Americas
Billings growth, up from 11% in Q1, primarily driven by new business activity.
—approximately 21%——
India
Billings growth against a strong prior year comparable period in the travel vertical.
—approximately 3%——

Product announcements

ProductTypeDetails
ARIA AI assistantupdate

Deals & partnerships

Marqeta Data and risk information sharing to increase approval rates

The partnership provides Riskified the ability to share data and risk information with Marqeta, allowing them to increase approval rates on behalf of Riskified's merchants. This creates a more differentiated offering for Riskified in competitive situations.

Risks & headwinds

Increasingly complex fraud environment Ongoing

Loss rates rise industry-wide; sophistication and velocity increasing, possibly due to agentic tools.

Mitigation:Riskified's expanded platform, identity intelligence, and unified approach to fraud management across the transaction lifecycle.

Gross margin pressure from new merchant ramp-up and mix shift Q2 FY26

Gross margin was 46% in Q2 FY26.

Mitigation:New merchants typically begin at lower margins but are expected to improve over time; performance across existing merchant base remained healthy due to ongoing enhancements to core machine learning models.

Foreign currency fluctuations impacting GAAP net loss Q2 FY26

GAAP net loss impacted by increase in other expense tied to foreign currency fluctuations.

Mitigation:Non-GAAP operating expenses would have been $4.1M lower on a constant currency basis, indicating underlying operational efficiency despite currency headwinds.

What to watch in Q3 FY26

Digital Finance category growth

Remainder of 2026
Current approximately 180% YoY in Q2 FY26
Target Significantly exceed company's average growth rate

Why it matters

This category is a key growth driver, and its continued outperformance is critical for overall revenue acceleration and achieving full-year targets.

Looking ahead, we continue to expect our tickets and travel, digital finance and fashion and luxury categories to collectively approximate 80% of total billings for the year, with digital finance to significantly exceed the company's average growth rate throughout the remainder of 2026.

Find out whether RSKD delivers this. Inve re-checks your case every morning.

Q&A highlights

Is the new logo momentum a continuation or an inflection due to AI proliferation, and how confident is Riskified in maintaining CPV ratios given increasing fraud complexity?

Eido Gal stated that the momentum is a convergence of an expanded product platform and increased fraud sophistication, possibly AI-related, causing everything to 'click' this quarter. He affirmed confidence in solving fraud better than individual merchants and expects CPV ratios in newer categories/geographies to improve over time.

“I do think some kind of fundamental issues and kind of just all aligning to good timing right now. To the second part of your question, yes, we continue to feel confident about our ability to solve the problems of fraud and definitely more so than any single individual merchant can.”

asked by Ryan Tomasello · answered by Eido Gal

2 min read 6 chapters

Detailed narrative

Complex Fraud Environment & Platform Expansion

Riskified highlighted that fraud risk is growing more sophisticated and moving faster, potentially due to agentic tools, leading to rising industry-wide loss rates. The company's expanded platform, covering account creation, login, checkout, and post-purchase activities, is addressing this complexity. Merchants are increasingly seeking unified solutions over multiple point solutions, finding that the platform approach performs better by strengthening defenses across the transaction lifecycle.

Non-Card Payment Coverage & ACH Growth

The company has developed a robust risk layer for non-card payment methods, such as ACH, enabling instant payouts and substantially reducing risk for merchants. This innovation allows merchants to leverage low-cost funding instruments while meeting customers' diverse payment preferences. The dollar value of ACH transactions processed in Q2 FY26 was approximately 19 times the value processed in the second quarter of the prior year, demonstrating significant adoption and value creation.

Identity Intelligence Beyond Checkout

Merchants are increasingly utilizing Riskified's identity intelligence for applications beyond traditional checkout fraud prevention. This includes real-time risk scoring within customer service workflows and creating dynamic customer risk profiles to facilitate faster transactions for trusted customers. The platform's extensive identity database, comprising billions of nodes across the transaction lifecycle, positions Riskified to deliver additional value by optimizing customer experience based on risk understanding.

New Business Momentum & Category Strength

The quarter saw a significant acceleration in new business momentum, diversified across various geographies and merchant categories. New logo acquisition was a strong contributor, with 5 of the top 10 new logos headquartered outside the United States. Healthy activity was observed in travel, payments (rebranded as digital finance), and fashion verticals, with elevated transaction volumes from live sports events particularly benefiting tickets and digital finance categories.

Multiproduct Adoption & Retention

Riskified's multiproduct merchant base grew approximately 50% year-over-year, serving as clear evidence of the platform strategy's effectiveness. This expansion into more of the network drives additional upsell opportunities and reinforces customer retention. The company also maintained competitive win rates above 75% in the second quarter, further validating the differentiation of its platform against alternatives.

Financial Performance & Capital Allocation

The company achieved strong revenue growth and increased profitability, leading to a raised full-year outlook for both revenue and adjusted EBITDA. Riskified maintains a strong balance sheet with $223.6 million in cash, deposits, and investments, and carries zero debt. It generated $12.9 million in free cash flow in Q2 FY26 and continued its share buyback program, repurchasing 13.7 million shares for $63.9 million, contributing to an 8% reduction in total shares outstanding during the quarter.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.